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When both parties are on the same page, an owner-financed home purchase can work out beautifully.
The main reason a potential home buyer may look for an owner-financed property is they are unable to secure loan approval from a traditional mortgage lender. That's not to say anything terrible has happened. Yes, their credit score may need a boost, but it's also possible they haven't had time to build a credit history. Maybe they just graduated college and haven't taken on enough debt to build their credit history, or maybe they're new to the country and are starting over.
Whatever the reason, an owner-financed property can be a good option. However, whether you're the buyer or the seller, it's vital that your contract protects you and your financial interest. Fortunately, there's no boilerplate contract you're forced to use. When you enter an owner-financed home sale, both parties have a say as to what's included.